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Showing posts from December, 2019

Brief Notes On Present Economic Recession in India (2019)

-* Dr. S. Vijay Kumar The National Bureau of Economic Research defines a recession as "a period of falling economic activity spread across the economy, lasting more than a few months." A recession occurs, when the economy declines significantly for at least six months. People often say a recession is when the GDP growth rate is negative for two consecutive quarters or more. But a recession can quietly begin before the quarterly Gross Domestic Product reports are out.  Economic Recession occurs, when there will be a drop in the following five economic indicators: Real GDP, Income, Employment, Manufacturing and retail sales. The data comes out monthly. When these economic indicators decline, so will GDP. The following   are the reasons for present Economic Recession in India: Demonetization: In 2016, due to the demonetization of Rs. 500 and Rs. 1000 currency notes, there was a shortage of cash in our economy. Due to this, sales were down in different sectors of our ec